Case Note & Summary
The case involved a dispute between a housing cooperative and its member regarding the failure to develop land and deliver possession of a plot. The appellant, M.D., Orissa Co-operative Housing Corporation Ltd., challenged the orders of the Consumer Disputes Redressal Forum, the State Consumer Disputes Redressal Commission, and the National Consumer Disputes Redressal Commission, which awarded interest to the complainant for the delay in delivering possession. The appellant contended that the Consumer Fora lacked jurisdiction due to a bar under the Co-operative Societies Act. However, the Supreme Court noted that the issue of jurisdiction was settled in a previous case, affirming that the Consumer Protection Act provided a wider remedy. The District Forum had found that the appellant abandoned development work, leading to a deficiency in service, and awarded interest at a reduced rate of 12% per annum. The Supreme Court dismissed the appeal, finding no merit in the arguments presented and upheld the decisions of the lower Fora. The special leave petition was also dismissed, with no order as to costs due to the respondent's absence.
Headnote
A) Consumer Law - Jurisdiction of Consumer Fora - Bar under Co-operative Societies Act - The jurisdiction of Consumer Fora under the Consumer Protection Act, 1986 is not ousted by Section 90 of the Tamil Nadu Co-operative Societies Act. The court held that the remedy under the Consumer Protection Act is wider, allowing the Consumer Forum to adjudicate disputes between members and the Co-operative Society (Paras 2-3). B) Consumer Law - Deficiency in Service - The appellant was found to have abandoned development work, constituting deficiency in service. The court upheld the award of interest to the complainant due to the appellant's failure to deliver possession of the plot (Paras 3-4).
Issue of Consideration
Whether the Consumer Fora were justified in awarding interest to the complainant for non-development and non-delivery of plots.
Final Decision
The Supreme Court dismissed the appeal, finding no merit in the arguments regarding jurisdiction and upheld the award of interest due to deficiency in service.
Law Points
- Consumer Protection Act
- 1986
- jurisdiction of Consumer Fora
- deficiency in service
- interest on deposits
